Swiss regulator files criminal complaint against FIFA
Geldspielaufsicht, the Swiss Gambling Supervisory Authority (GESPA), has filed a criminal complaint with prosecutors over FIFA’s World Cup-themed NFT platform. According to Gespa, FIFA offers unlicensed gambling services in Switzerland.
GESPA said it became aware of the online platform collect.fifa.com (FIFA Collect) in early October. “During the investigation, suspicions were confirmed that collect.fifa.com offers gambling services that are not licensed in Switzerland and are therefore illegal,” the regulator said in a statement.
FIFA Collect is a platform where various competitions, including drops and challenges featuring collectibles, are offered in the form of non-fungible tokens (NFTs). At the center of the probe are FIFA’s “Right to Buy” (RTB) tokens, which are sold through its official platform, FIFA Collect.
The platform encourages users to collect and trade blockchain-based NFTs, in return for special access to buy FIFA World Cup tickets.
Take the $999 “Right to Buy: England Finals” token as an example. It becomes valid only if England makes it to the final. Most tokens probably won’t go toward buying tickets for the 48-team event.
Upon investigation, regulators determined that the gambling was because participation in competitions on the platform requires a monetary stake, with cash prizes available to be won. The outcome for participants depends on random draws or similar chance-based procedures.
These hypothetical NFT-based goods may be considered gambling under Swiss law since they incorporate chance, payment, and prize. Gespa stated, “From a gambling law perspective, the offers in question are partly lotteries and partly sports betting.”